Delaware FHA 203k Rehab Loans

Delaware FHA 203kLoans can be used to renovate, rehab or just upgrade residential properties and 1-4 unit buildings as long as your are going to live in one of the units as your primary residence. You can use a FHA 203k loan in New Castle County, Kent County and Sussex County. You can use the FHA203k Loan to purchase and fix up your dream home or to refinance your current home to do renovations and upgrades. You can even add appliances and energy efficient upgrades. Call 302-703-0727 for more information or to apply for 203k loan. You can also APPLY ONLINE

How Much Can I Borrower on FHA 203k Loan?

The maximum FHA loan amount for a 203k rehab loan is calculated by taking the purchase plus the rehab loan amount and then taking 96.5% of this total amount.

Example of Maximum Loan Calculation:

Purchase Price – $200,000

Total Rehab Loan Amount – $50,000

Maximum Loan Amount – $250,000 x 96.5% = $241,250

You are limited by the maximum Delaware FHA loan limit for each county. You are also able to borrower up to 110% of the after repaired value (ARV) of the property based on the FHA 203k Appraisal.

The rehab and repair work is done after the loan closes and the buyer purchases the home. The rehab loan is held in an escrow account by the mortgage lender and is paid out on a draw schedule to the licensed contractor that completes the work.

FHA 203k Rehab Loans are great for purchasing bank owned properties that need repairs or short sale properties that require repairs.

Qualifications for Delaware FHA 203k Rehab Loans:

Minimum 640 FICO Credit Score

Purchasing as a Primary Residence that will live in for at least one year